Managed Money - Negative Sentiment At Highest Level In History; Gold, Silver and Copper Ahead Of A Furious Rebound

When pessimism prevails there is practically no chance the market will go down. These days Managed Money (mostly big hedge funds) holds the highest short positions in gold, silver and copper  ever.

To make the picture clear, instead of presenting three charts, I have added and adjusted short positions held by Managed Money in these commodities. Please, look at the chart below:

Well, every time the Managed Money was totally pessimistic about any market, no new down leg started. Quite contrary - if such was a case, we saw the market bouncing up. Looking at the highest short position in three popular commodities, I think the rebound will be really surprising.